7 Ways To Quickly Add Value With Commercial Property

22 May, 2013 by Leave a Comment

QuickGain
COMMERCIAL PROPERTIES are mainly seen as a longer-term (at least 3-year) investments. And you tend to buy them for their regular, high yields; as well as some for good capital growth over time.

Even so, an investor with a little knowledge and experience can easily find properties able to be "upgraded" and then, on-sold for a quick gain.

Typically, this would involve you in improving the income stream from your property; and perhaps the security of that income. Both of which would result in a boost to the property's overall appeal AND value.

Your Options for a Fast Turnaround [Read more...]

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Filed Under: *Expert Panel, Industrial Sector, Market Sectors, Offices, Property Insights, Retail Sector Tagged With: , , , , , , , , , , ,

How to Complete a Building Project on Time & on Budget

21 May, 2013 by Leave a Comment

ProjectManagement2
AS YOU DISCOVERED last week, carrying out a proper due diligence is vital for any significant Commercial property purchase.

And that's part of our role … assessing the overall structure, along with the various building services — simply to ensure they are all in good order.

However as time goes by, you may well have the need to upgrade or extend your building … if only to meet the changing needs of your tenants.

Yet this is where many investors seem to get into trouble — by undertaking something well beyond the limits of their capabilities. [Read more...]

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Filed Under: *Expert Panel, Due Diligence, Industrial Sector, Key Consultants, Market Sectors, Offices, Opportunities, Your Exposure Tagged With: , , , , , , , , , , , ,

Be Wary of Using Bank Bills

20 May, 2013 by Leave a Comment

BankBills
Part 1: An Understanding, plus the Hidden Costs

WHENEVER YOU ARE financing a commercial property investment or a business, the types of funding can be broadly classified into two categories: bill facilities and non-bill facilities.

The Concept

Bill facilities are charged as a margin over the inter-bank lending rates, published each day in the Financial Review as commercial bills; while non-bill facilities are charged as a straight interest rate.

The funds for these facilities may also be raised through the money markets, but they are priced on a simple interest rate basis over a loan term. [Read more...]

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Filed Under: *Expert Panel, Finance, Industrial Sector, Market Sectors, Offices, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , , ,

To Caveat … Or Not to Caveat?

17 May, 2013 by Leave a Comment

Caveat

BEFORE EVEN beginning to answer this question, you first need to understand what a Caveat involves.

A Caveat is a document, which any person with a legal interest in a Property is able to lodge with the land registry (or titles office).

After registration, a caveat note appears on the Title giving prospective purchasers or financiers notice that a third party might have rights over the property.

The process of preparing, lodging and having a caveat registered with the land registry is quite straight forward. Accordingly, caveats are commonly lodged over properties without obtaining legal advice. [Read more...]

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Filed Under: *Expert Panel, Industrial Sector, Legal Matters, Market Sectors, Offices, Opportunities, Retail Sector, Training Material, X~Factors, Your Exposure Tagged With: , , , , , , , , , , ,

Melbourne Office Market is Holding Its Own

16 May, 2013 by Leave a Comment

Melbourne-OfficesMELBOURNE is Australia's second-largest office market, and has remained relatively resilient since 2010.

A range of factors supported this, including … limited new supply and growth in absorption (driven by Australia's economic recovery during that period).

Underlying Strength

On the demand side in particular, the size and diversity of Melbourne's white-collar workforce was a key reason supporting the market's resilience, although on-going staff reductions in the finance and government sectors is lessening demand.

The Melbourne CBD office market was challenged through the first half of 2012. Although additional new supply was largely pre-committed, remnant back-fill space saw vacancies rise from 5.2% in January to 5.6% in June.

Despite some softening, CBD vacancy rates remain the second tightest nationally and below their long term average.

Subdued economic conditions are anticipated to continue challenging the sector with a softer labour market stalling rental growth and increasing sublease availability. Investor demand for CBD assets, including from international institutional investors, remains strong with constrained activity a function of limited supply rather than weak demand.

Vacancy Levels

Vacancies within the suburban office market have stabilized (currently at around 7.0%) having peaked at 8.0% through the GFC. Recent supply has been limited due to restrictive financing conditions, however new committed supply is emerging in the near-term around the inner east.

Diminished business confidence in the wake of continued economic uncertainty is impacting tenant demand. However, decentralization of large public sector users continues to buffer suburban markets.

Bottom Line: The Melbourne office sector will continue to be challenged in the near- term by domestic and international economic uncertainty.

And although the market is currently outperforming long term averages, anticipated softening in labour market conditions and lingering international economic downside risks may dampen short-term growth prospect.

Morton

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Filed Under: *Expert Panel, Economic Issues, Global Scene, Investment Opportunity, Market Sectors, Offices, Opportunities, Valuer's Viewpoint Tagged With: , , , , , , , , , , ,

How to be Creative When You Need a New Tenant

15 May, 2013 by Leave a Comment

OfficeVacancyAt some point, your Commercial Tenant will simply move on. It just happens from time to time.

THEREFORE, what we'll do here is explore some creative ways to address this … AND still maintain your sanity, at the same time.

But no matter which approach you adopt, there are several things you always need to do. [Read more...]

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The Tax Man and You

14 May, 2013 by Leave a Comment

TaxDepreciationBEING A COMMERCIAL property owner, the Australian tax system allows you to claim a deduction from your income.

And that relates to the wear and tear upon the structure of a commercial property, and the depreciation of the plant and equipment items it contains.

Depreciation is available to all property owners who generate an income from that property. But the secret is to make sure you maximise these deductions, to boost your bottom-line cash flow.

By maximizing your tax depreciation deductions every financial year can make a huge difference to the tax you pay. And it may even result in the ATO paying money back to you, at the end of the year.

A few facts about Depreciation for Commercial Properties [Read more...]

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Filed Under: *Expert Panel, Investment Opportunity, Opportunities, Tax Depreciation, Taxation Tagged With: , , , , , , , , , , ,

Proper Due Diligence is Vital

13 May, 2013 by Leave a Comment

DueDiligence2

MANY PEOPLE will make the mistake of not carrying out a due diligence study BEFORE they acquire their Commercial properties.

But this can end up becoming a very expensive process — because you'll can often miss out on the property, if someone else snaps it up, before you?re able complete your study.

Therefore, the secret lies in ensuring you negotiate a deal ? where your due diligence occurs AFTER you have tied up the property, under a binding contract of sale.

Anyway, here are the 5 Key Elements you need to investigate … [Read more...]

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Filed Under: *Expert Panel, Due Diligence, Industrial Sector, Market Sectors, Offices, Opportunities, Retail Sector, Your Exposure Tagged With: , , , , , , , , , , ,

Arranging Your Finance

10 May, 2013 by Leave a Comment

Your Top 5 Tips ...

IT IS NO SURPRISE that banks are still rather coy about funding Developments, so maybe a few ideas on how to get your projects across the line could be helpful.

Here are the Top 5 Tips …

  1. Properly Assess Your Capital Requirements
    Do a thorough feasibility before proceeding with any project, to ensure you have sufficient funds to complete the project based on 80% funding of total costs. Make sure you factor into your calculations capitalised interest, for least 12 months.
    .
  2. Lock In Enough Pre-Sales
    Make sure you are aware of the number of pre-sales you will require. And also properly research the market — so you are confident the properties in your development will sell off-the-plan. If your development is not suited to pre-sales, ensure that you are able to arrange finance without pre-sales (or with a lower pre-sale requirement through a non-bank) before proceeding. [Read more...]
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As a Commercial Landlord, How does the Personal Property Securities Act Affect You?

9 May, 2013 by Leave a Comment

You can now protect your Personaal Property

TO BE HONEST, most investors have little or no idea of the added protection for Landlords, with respect to any personal property you make available to tenants — such as office furniture, or any other equipment.

Many of you would be aware that real property has historically been registered by the land title (or in some states, the registration of the lease). Whereas, personal property has not been registrable.

However with the creation of the Personal Property Securities Register, personal property can now be registered — and therefore, your rights fully protected. [Read more...]

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Brand New … Rearing to Go!

7 May, 2013 by Leave a Comment

Expert-Panel

Bringing you Commercial Property in far Greater Depth.

NOTHING BEATS hearing it straight from an Expert in their field. Whether it is Legal matters, Finance, Due Diligence, Tax Depreciation, Valuation issues or about the Commercial property market … who better than those handling these specific areas day in, and died out?

And that's why I've brought together an Expert Panel … to provide you with regular, in-depth articles on each of these aspects.

Meet all the New Contributors [Read more...]

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